ICH Corporation and Coca-Cola Announce New Exclusive 10-Year Beverage Agreement for Arby's Units
BUSINESS WIRE - January 10, 2001 08:37
SAN DIEGO, Jan 10, 2001 (BUSINESS WIRE) -- ICH Corporation (AMEX:IH) today announced that its Sybra subsidiary, the second largest franchisee of the Arby's brand, has entered into a new exclusive ten-year beverage supply agreement with Coca-Cola North America Fountain, a Division of The Coca-Cola Company (NYSE:KO). Sybra currently owns and operates 214 Arby's restaurants and is in the fourth year of a nine-year, 210 store development agreement with Triarc Restaurant Group, the franchisor of the Arby's brand.
Under the new agreement, Coca-Cola will provide Sybra with approximately $25-30 million in total funding for soft drink marketing, store operations and business development. It is estimated that Sybra will generate approximately $290 million in soft drink revenues over the term of the agreement. The new agreement provides that, with certain limited exceptions, Coca-Cola will be the exclusive supplier of fountain beverages to Sybra's Arby's restaurants.
"We're very excited about the new ten year partnership between our company and The Coca-Cola Company. This partnership provides us with necessary capital to achieve our sales and development goals while we focus on maximizing our soft drink sales and profits," stated John A. Bicks and Robert H. Drechsler, Co-Chairmen and Chief Executive Officers of ICH and Sybra.
"This ten-year beverage agreement represents our belief in, and commitment to, Sybra and Arby's success," said Tom A. Moore, president, Coca-Cola North America Fountain. "As the exclusive supplier of fountain beverages to Sybra's Arby's restaurants, we can ensure a quality fountain program that delivers value to our customers and consumers." |
